Federalism reform needs politics of hope

MLS Professor Cheryl Saunders believes the Commonwealth needs to return some power to the states.

Professor Saunders said federalism was being "progressively weakened", with too many decisions being made by the Commonwealth rather than by the states, and any reform needed a clear sense of purpose and direction.

"It requires cultural changes as well as constitutional redesign," she said.

Fellow speaker and former Victorian Premier John Brumby agreed that more responsibility had to be given back to the states.

He said it required a better alignment of revenue with roles and responsibilities.

"Federalism is the right model but it is not working as it should be," he said.

Dr John Hewson, former federal leader of the Liberal Party, said politics was undermining any substantive reform.